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Direct labour plus factory overhead together are called:

ASunk costing
BConversion cost
CPrime costing
DPeriod costing
Answer & Solution
Correct answer: B. Conversion cost
1. Materials are left out this time. 2. These costs convert materials into products. 3. It is the conversion cost. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
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